Finance Minister Galab Donev: A new debt is unavoidable

"A new debt is unavoidable. Today, the government approved a debt ceiling of €3.8 billion." This was announced by Deputy Prime Minister and Finance Minister Galab Donev during a briefing at the Council of Ministers.

According to the minister, without taking on additional state debt, the government will face difficulties in paying pensions, public-sector salaries, and social benefits as early as July. He added that the National Assembly must approve the proposal by 20 June

"What is the current fiscal reality? A deficit of 7.4% if existing policies remain unchanged and no measures are taken to consolidate public spending. This amounts to more than €1.5 billion. In addition, there are another €2.2 billion in unpaid liabilities - expenses that were effectively hidden away in drawers," Donev said.

Regarding the excessive deficit procedure that the European Commission is expected to initiate against Bulgaria, the deputy prime minister described it as "a foreseeable scenario."

"I assume that the European Commission will place Bulgaria under monitoring, but we will not wait for instructions or for the stricter measures that the Commission could impose. We will bring government spending within acceptable limits," he stressed.

In conclusion, Donev stated that it would be possible to reduce the deficit to 3% if society is prepared to accept the necessary measures, foremost among them a freeze on incomes. He warned:

"Unpopular measures lie ahead. We must prepare to swallow the bitter pill."

Edited by Diana Tsankova